Slide 1: Nilfisk Q1 Interim Report 2018
Nilfisk Q1 Interim Report 2018 Webcast presentation – May 16
Slide 2: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 2 Nilfisk Q1 Interim Report 2018
Slide 3: Q1 2018 Continued positive momentum
Q1 2018 Continued positive momentum Financial highlights • The positive sentiment from Q4 continued into Q1 and the order intake remained strong • In Q1, unusual delivery shortages created an order backlog of approximately 7 mEUR above normal, leading to organic growth of 1.3% • EBITDA margin before
Slide 4: Q1 2018 Continued positive momentum: Delivery situation
Q1 2018 Continued positive momentum Delivery situation • Delivery shortages created an extraordinary order backlog; approximately 7 mEUR above normal at the end of March • Delivery shortages from production facilities in US and Hungary impacted a few product platforms: – Unexpected change in product
Slide 5: Q1 2018 Simplifying the business
Q1 2018 Simplifying the business Actions • Signed agreement on selling Nordic Chemicals & Utensils business with a positive P/L and cash flow effect. 10 mEUR annual revenue • Strategic review of Outdoor on track • Implementation of product pruning leading to a reduction of +40% of our product platfo
Slide 6: Q1 Autonomous cleaning
Q1 Autonomous cleaning Actions • Six Nilfisk Liberty A50 machines deployed in US and EMEA • Positive feedback on performance • Successfully passed 3rd party testing against applicable standards on safety, EMC and RED, both in the EU as well as US • Software updates ongoing aiming at selling up to 10
Slide 7: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 7 Nilfisk Q1 Interim Report 2018
Slide 8: EMEA: Continued growth
EMEA: Continued growth Comments • Organic growth in Q1 of 4.9% • Positive growth in France, East/Southeast Europe and the private label business, with Germany, Benelux and Sweden behind expectations • Reduction in order backlog in April 2018, brought organic growth to 6.2% for the first four months
Slide 9: AMERICAS: Weak quarter but strong pipeline
AMERICAS: Weak quarter but strong pipeline Comments • Moderate growth expectations due to strong Q1 2017 of 10% • Organic growth in Q1 of -5.8% exacerbated by delivery issues impacting certain floorcare products in US and a strategy change from a large dealer which could not be mitigated within the
Slide 10: APAC: Growth sustained at a new level
APAC: Growth sustained at a new level Comments • Organic growth in Q1 of 3.1%, continuing the sentiment from the end of 2017 • Double-digit growth in China • April 2018 demonstrated further strong growth, bringing organic growth to 5.1% for the first four months • Gross margin in Q1 of 42.2%, up 2.2
Slide 11: Specialty Professional: Strong growth story
Specialty Professional: Strong growth story Comments • Strong organic growth in Q1 of 14.2% • Double-digit growth in Industrial Vacuum Solution, driven by product launches and high demand • Momentum in Specialty Professional continued in April bringing organic growth to 20.0% for the first four mont
Slide 12: Specialty Consumer: Negative growth due to a cold Spring in Europe
Specialty Consumer: Negative growth due to a cold Spring in Europe Comments • Q1 sales below expectations due to a cold spring in Europe • The high pressure washer season peaked in April, and with organic growth of -1.3% for the first four months, we saw the continued stabilization of the topline •
Slide 13: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 13 Nilfisk Q1 Interim Report 2018
Slide 14: EBITDA margin
EBITDA margin Comments +2.4 Share price 11.9 End of Dec 2017: 363.0 9.5 EBITDA End of Mar 2018: 283.5 • Q1 EBITDA margin before special items of 11.9% Before special items • Positive impact of 1.6% from phantom share Nilfisk Share price program adjustment 370 350 • The EBITDA margin impacted by lowe
Slide 15: Gross margin journey
Gross margin journey Comments 42.2% 42.4% • Gross margin of 42.4% continued the improvement 41.9% from 2017 40.9% 41.0% 40.8% • Positive impact from: – Sourcing optimization – Process improvements – Complexity reductions – Price increases • Partly off-set by: – Higher private label sales than expect
Slide 16: Working capital and RoCE
Working capital and RoCE 20.0% 19.2% 17.6% 17.0% Comments 16.2% Working Capital ratio LTM • Working capital ratio 17.0%, in line with expected normalized level • RoCe of 14.9% decreased from Q4 2017 due to lower EBIT in Q1 FY 2014 FY 2015 FY 2016 FY 2017 Q1 2018 RoCE 17.6% 16.0% 14.6% 14.9% 12.9% FY
Slide 17: P/L summary
P/L summary Comments • Negative currency impact on top-line of 5.6%, but insignificant impact on EBITDA margin EUR million Q1 2018 Q1 2017 • Special items related to cost saving program Operating profit before amortization/impairment and special items 22.2 27.0 • Financial gearing of 3.3 in line wit
Slide 18: Cost saving program expanded and ahead of plan
Cost saving program expanded and ahead of plan Full potential Comments 2017 2018 2018 2019 2020 EUR million Realized Q1 Expected Expected Expected end 2020 • 35 mEUR target increased to 38-42 mEUR by end of 2019 Annual accumulated impact on EBITDA before special items related 21 23 31-35 38-42 50 50
Slide 19: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 19 Nilfisk Q1 Interim Report 2018
Slide 20: Outlook 2018 – unchanged
Outlook 2018 – unchanged Organic EBITDA margin revenue growth before special items 3.0%-4.0% 11.5%-12.0% 2018 guidance 2018 guidance 20 Nilfisk Q1 Interim Report 2018
Slide 21: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 21 Nilfisk Q1 Interim Report 2018
Slide 22: Q&A
Q&A Page 22 Nilfisk Q1 Interim Report 2018
Slide 23: Forward-looking statements
Forward-looking statements This presentation and related comments contain forward-looking statements. Such statements are subject to many uncertainties and risks, as various factors, of which several are beyond Nilfisk Holding’s control, may cause that the actual development and results differ mater